Disability service providers in New York generate billions in economic activity, but state regulations still limit job growth for people with disabilities, according to a new report from the Rockefeller Institute of Government.
The study, released Monday, examines the economic and social impact of New York State Industries for the Disabled and other nonprofit disability service providers.
Researchers found nonprofit disability service providers generated $15.6 billion in economic output, supported nearly 200,000 full-time jobs and contributed $2.4 billion in state and federal tax revenue.
NYSID’s member agencies alone produced $470 million in economic impact in 2023 and employed 4,800 people with disabilities, who worked more than 3.6 million hours that year.
The report says current regulations create “persistent barriers” to high-quality employment and recommends several changes to align with Gov. Kathy Hochul’s Employment First policy under Executive Order 40.
Among the recommendations:
- Raise the approval threshold for government purchases through the Preferred Source Program. Contracts with NYSID above $100,000 require approval from the Office of General Services, while other state programs have higher limits. The report suggests increasing the Preferred Source threshold to $300,000 to reduce administrative burdens.
- Expand the types of jobs and industries eligible under the Preferred Source Program to increase employment opportunities.
- Reduce compliance requirements so agencies can focus more on job placement and support rather than paperwork.
- Consider including formerly incarcerated individuals with disabilities and justice-involved youth with disabilities in employment efforts. The report notes nearly one-quarter of the state’s prison population reports a cognitive disability.
The report states that “New York has made some progress, especially through the Preferred Source Modernization Act, but there are still regulatory and statutory challenges that prevent the state from realizing its Employment First goals and expanding employment for people with disabilities.”
NYSID President and CEO Maureen O’Brien said the findings highlight both progress and remaining obstacles.
“This new Rockefeller report sends a strong message that while New York State has made great progress in expanding opportunities for people with disabilities to get good jobs, significant obstacles remain that prevent the state from getting the most from and doing the most for these New Yorkers,” O’Brien said.
Michael Seereiter, president and CEO of the New York Alliance for Inclusion & Innovation, urged state leaders to adopt the recommendations.
“Enacting these Rockefeller recommendations would be a good first step,” Seereiter said.
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